ISLAMIC AND ALTERNATIVE MARKETS
Chief Executive Officer’s Message and Management Discussion and Analysis
From the Board of Directors and Senior Management
Bursa Malaysia • Annual Report 2013
36
MARKET IMPROVEMENTS
In 2013, several initiatives were implemented to bolster the infrastructure of the
IAM as follows:
• Launch of the ETBS Asset Class
The ETBS initiative was launched by the Prime Minister of Malaysia on 8
January 2013. Conceptualised as an Entry Point Project (EPP) for the capital
market under the ETP, the ETBS aims to broaden the Exchange’s offering as
well as to promote and strengthen retail participation in the bonds/sukuk
market.
• Listing of DanaInfra Nasional Berhad (DINB) ETBS
The first Government Guaranteed DINB ETBS was listed on 8 February 2013
with an issuance size of RM300 million, a 10-year tenure and a yield of 4%
per annum. It was oversubscribed by 161%. A second ETBS for RM100 million
issued by DINB was listed on 28 November 2013. Featuring a 15-year tenure
and a yield of 4.6% per annum, it was oversubscribed by 219%.
• Revised Shari’ah Screening Methodology
The revision in Shari’ah screening methodology by Securities Commission
took effect on 29 November 2013. Aligning our Islamic securities market
with international standards, it will potentially spur a greater inflow of foreign
Islamic funds into Malaysian Shari’ah-compliant equities, thus expanding our
global reach.
MARKET ENGAGEMENT
In 2013, our IAM embarked on several initiatives to engage with investors and
promote the marketplace. We engaged with approximately 150 institutions and
15,000 retail investors. The following were some of the major events undertaken:
• Dialogue Session on Revised Shari’ah Screening Methodology (RSSM);
• Engagement with BSAS Commodity Trading Participants (CTPs);
• Participation in Invest Fair Malaysia 2013; and
• IAM participation in event and speaking engagements that reach out to
investors. These included:
- Kuala Lumpur Islamic Finance Forum 2013;
- Islamic Finance News Asia Forum 2013; and
- Palm Oil Refiners Association of Malaysia Annual Forum 2013.
Aside from the above, the following activities were initiated to increase the
number of BSAS registered participants:
• Marketing drives to encourage more trading by existing CTPs. These
initiatives included constant follow-up, specific guidance to members on
operating the BSAS system and continuous education and awareness
programmes.
• A marketing drive targeting current and potential members from MENA
Region countries. We are also exploring the potential of other regions such
as the Commonwealth of Independent States (CIS).
• Updates on BSAS operations and the support structure to facilitate the
migration of financing activities by existing and new CTPs (i.e. those
who were previously based on Bay I’nah who migrated over to Tawarruq
products based on Commodity Murabahah).
Launch of the Exchange Traded Bonds and Sukuk (ETBS)
Listing of DanaInfra (DINB) ETBS
